Ukrainian Lawmakers Approve Sorkin as Central Bank Governor

Jan. 11 (Bloomberg) -- Ukrainian lawmakers approved
President Viktor Yanukovych’s candidate to head the central bank
as the former Soviet republic prepares to welcome International
Monetary Fund officials for talks over a new bailout this month.

A bill nominating Ihor Sorkin, named acting governor after
Serhiy Arbuzov was promoted to first deputy prime minister in
December, was backed by 231 lawmakers in the 450-seat
legislature in the capital, Kiev. Parliament yesterday failed to
back a decree dismissing Arbuzov and appointing Sorkin as 30
deputies were absent.

“One of the main tasks is to cut loan and deposit interest
rates,” Sorkin, 45, told Parliament today. “The central bank
will also deepen its cooperation with international
organizations such as the IMF and the World Bank.”

Ukraine is seeking international aid for the third time
since 2008 as its economy loses steam because of weaker demand
for exports such as steel. The IMF postponed a December trip to
Ukraine until mid-January to allow a new cabinet to be chosen.
Yanukovych’s Party of Regions fell short of securing a majority
in winning October parliamentary elections.

The hryvnia rebounded to 8.1213 per dollar as of 5:13 p.m.
in Kiev after falling to 8.1985 earlier today, according to data
compiled by Bloomberg.

Trip Date

An IMF mission will arrive in Kiev Jan. 24, Sorkin told
reporters. The fund said in an e-mailed statement that the visit
should take place “in the near future,” though a date hasn’t
been set.

The Washington-based lender has urged Ukraine to move
toward a more flexible exchange rate, which the central bank
manages by buying and selling foreign currency. Selling pressure
on the hryvnia helped trigger a 23 percent plunge in foreign
reserves last year to $24.5 billion, the lowest since February
2010.

Sorkin was born in the eastern city of Donetsk in
Yanukovych’s native region. He was named deputy central bank
governor in July 2010, leading the regulator’s supervisory
department. Sorkin’s father, Viacheslav, is first deputy head of
OAO Gazprom’s investment department, according to the Russian
natural gas monopoly’s website.